A. both supply and demand are elastic

B. both supply and demand are inelastic

C. demand is inelastic and supply in elastic

A. a decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold

C. an increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold

D. a decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold

A. the buyers bear the burden of the tax

B. the tax burden falls most heavily on the buyers.

D. the sellers bear the burden of the tax

A. Landlords may be offered bribes to rent apartments

B. Landlords may discriminate among apartment renters

C. There may be long lines of buyers waiting for apartments

E. there will be a storage of housing

A. All there are equally likely to find it difficult to get a job

B. A manual worker with fifteen years of work experience

C. A professional worker with university degree.

B. food

C. housing

D. Clothing

A. demand curve downward by the size of the tax per unit.

C. demand curve upward by the size of the tax per unit.

D. supply curve downward by the size of the tax per unit

A. both supply and demand are inelastic

B. demand is elastic, and supply are inelastic

C. both supply and demand are elastic

A. demand is inelastic and supply in elastic

B. supply is inelastic, and demand is elastic

D. both supply and demand are inelastic

A. restricting petrol prices to Rs100 per litre when the equilibrium price is Rs150 per litre

B. rent controls

C. All of these answers are price floors

A. demand curve upward by the size of the tax per unit.

B. Supply curve upward by the size of the tax per unit

D. supply curve downward by the size of the tax per unit.

A. above the equilibrium price

B. precisely at the equilibrium price

D. at any price because all price ceilings are binding constraints

A. a surplus

B. an equilibrium

C. a shortage or a surplus depending on whether the price ceiling is set above or below the equilibrium price

A. equals the absolute value of the balance on capital account

B. includes goods services and unilateral transfers

C. #NAME?

D. is financed by savings

A. #NAME?

B. Restrict subsidiary exports when they undercut the market of the parent company

C. increasing the LDCs technological dependence on foreign sources resulting in less technological innovation by local workers

D. Hamper local entrepreneurship and investment in infant industries

A. are understaffed politically muddled and administratively complex

B. focus on loans and the grant element of aid is low

C. are biased toward Asia

D. #NAME?

A. In 2001, only Denmark Norway, Sweden, the Netherlands, and Luxembourg exceeded the aid target for LDCs

B. In the early 1990s the OECD contributed 98 percent of all aid

D. During the 1980s OECD countries contributed four fifths of the worlds bilateral official development assistance to LDCs

A. a significantly positive effect on growth in the subsequent five years

C. an exponentially negative effect on growth ten years

D. negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five years

B. the transportation and storage cost increased tremendously

C. agricultural production suffered excessively due to weather changes

D. proponents of basic-needs attainment opposed food-aid

A. technical assistance to stock market and financial market problems

B. loans for post-World War II reconstruction

D. bonds denominated in U.S dollars as a loan to LDCs

A. #NAME?

B. the foreign exchange gap

C. the savings gap

D. the skill limit

A. financial liberalization in LDCs leads to collapse of the economy

B. employers and consumers can more readily replace domestic workers with foreign workers by investing abroad or buying imports

D. an economy more open to foreign trade and investment faces a more inelastic demand for unskilled workers

A. #NAME?

B. technical cooperation

C. developments grants

D. loans with at least 25 percent grant element

B. the brain drains from LDCs to DCs

C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs

D. the fat that the DC capital market is perfectly competitive

A. changes of a traditional culture of a country to a western culture

B. decreasing autonomy of the nation-state involves

C. giving aid to poor countries to improve their economy politics and social status

A. is aid with repayment in inconvertible currency

B. is technical aid given by IMF

C. is a loan at bankers standards

A. the trade accounts

B. the capital accounts

D. the long-term current account

A. Finance a savings gap or balance of payments deficit

B. Employ domestic labor, especially in skilled jobs

C. Obtain foreign technology by adapting existing processes

D. #NAME?

B. is equivalent to Hollands aid

C. lowest among the OECD countries

D. higher currently than it was in the 1960s and 1970s

A. savings and financial liberalization

C. stock market and fiscal policy

D. savings from abroad and financial outflow

B. and the external openness of income growth among the poorest 40 percent of LDCs

C. and the dangers of a trade deficit

D. and MNC domination and its effects on income distribution

A. as in direct investment investors export goods and services abroad

C. investors transfer the technology to local investors

D. investors are directly involved in managing the operations

B. wealthy countries to wealthy countries

C. impoverished countries to impoverished countries

D. wealthy countries to impoverished countries

A. obtain necessary factor inputs

B. hire low-income workers

D. manufacture in nations they have difficult exporting to

A. export jobs by shifting technology overseas

B. export jobs by shifting investment overseas

C. enjoy unfair advantage in taxation

A. always enjoy political harmony in nations where their subsidiaries operate

C. require governmental subsidies in order to conduct worldwide operations

D. make it harder to nations to foster activities of comparative advantage

B. enters markets neither parent could have entered individually

C. yields cost reductions unavailable to parent firms

D. adds to the pre-existing productive capacity

B. R&D generating welfare improved technology

C. development of more productive machinery

D. new work rules promoting workers efficiency

B. the acquisition of an existing steel mill overseas

C. the creation of a wholly owned business firm overseas

D. the construction of a new auto assembly plant overseas

B. importing cheap foreign workers by keeping U.S investment at home

C. importing cheap foreign workers by shifting U.S investment overseas

D. exporting American jobs by keeping investment in the U.S

A. electrician employers in the high-paying nations

B. electrician unions in the low paying nations

D. electricians who stay in the low paying nations

A. horizontal merger

B. multinational corporation

C. vertical merger

A. marginal cost pricing

B. full cost pricing

D. price discrimination

A. total wage income in the world

B. business or capitalist income in the world

D. the productivity of labor

B. increase business or capitalist incomes in the low-paying nations

C. decrease wage rates in the low-paying nations

D. decrease productivity and real output in the world

B. sharing research and development cost among corporations

C. establishing work rules promoting higher labor productivity

D. forestalling protectionism against imports

B. cannot benefit from the advantage of comparative advantage

C. can only invest at home but not overseas

D. can only invest overseas but not at home

A. always produce primary goods

B. None of the above

C. always produce manufactured goods

A. countervailing duties

B. dynamic hedging

C. export led growth

A. limited the expansion of firms

C. created stationary economies of scale

D. maintained the relationship between firms and their clients